The move, which forms part of an intra-group restructuring exercise, will allow SunCon to streamline operations and sharpen its focus on core construction and related services, SunCon said.
Sunway Construction retains the discretion to postpone or defer the project, or any portion of it, by up to six months.
"Even so, given its strong brand equity and parentage, we think SunCon will be able to recover from this event without impacting its new order wins materially over the longer term.
“SunCon is also currently seeking legal counsel to evaluate the appropriate actions to be taken on certain sub-contracts and parties.
The Bursa Malaysia Construction Index, which tracks 50 stocks in the sector, was down to its lowest in more than three months.
“The group is optimistic of registering a positive growth in FY2024 supported by our strong existing outstanding order book” totalling RM6.
In a sector update on Thursday, the research house said that moving forward, the federal government may now be able to focus its efforts to roll out big-ticket infrastructure projects, in addition to implementing institutional reforms.
SunCon said the project is expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2023 onwards.
Liew said the group replenished a new order book worth RM1.
The contract is issued by Sunway South Quay Sdn Bhd (SSQ) to SunCon’s subsidiary Sunway Construction Sdn Bhd (SCSB).
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